New child payments

(a) In general Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6436. New child payments (a) In general An eligible taxpayer shall be allowed a credit in the amount determined under subsection (b) with respect to each eligible new child of the eligible taxpayer which shall be paid by the Secretary not later than 30 days after the date in which the eligible taxpayer files a claim for such credit. (b) Amount (1) In general The amount of the credit under this subsection with respect to each eligible new child shall be $3,000. (2) Inflation adjustments (A) In general In the case of a taxable year beginning in a calendar year after 2025, the $3,000 dollar amount in paragraph (1) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any amount after adjustment under the preceding sentence is not a multiple of $10, such amount shall be rounded to the next lower multiple of $10. (c) Definitions For purposes of this section— (1) Eligible taxpayer (A) In general The term eligible taxpayer means, with respect to any eligible new child, any taxpayer who— (i) is the parent (within the meaning of section 152(c)(4)) of the eligible new child, and (ii) who has the same principal place of abode as the eligible new child for the period beginning on the date described in paragraph (2)(A)(i) and ending on the date on which a claim for the credit under this section is made. (B) More than 1 parent claiming eligible new child If the parents claiming any eligible new child do not file a joint claim for the credit under this section together, such child shall be treated as the qualifying child of— (i) the parent with whom the child resided for the longest period of time described in subparagraph (A)(ii), or (ii) if the child resides with both parents for the same amount of time during such period, the parent with the highest adjusted gross income for the preceding taxable year. (2) Eligible new child (A) In general The term eligible new child means any individual who— (i) (I) was born to the eligible taxpayer (including through a surrogacy arrangement) after the date of the enactment of this section, (II) has not attained the age of 3 and was adopted by the eligible taxpayer after the date of the enactment of this section, or (III) who has not attained the age of 1 and is placed with the eligible taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction after the date of the enactment of this section, (ii) is a citizen or national of the United States, and (iii) who has been issued a social security number (as defined in section 24(h)(7), determined by substituting of the claim for a credit under section 6436 for of such return in clause (ii) thereof). (B) Exception Such term shall not include any individual with respect to whom a credit has been previously allowed under this section to any other person. (d) Taxpayer identification requirement No credit shall be allowed under this section unless the eligible taxpayer has included with the claim for a credit under this section the taxpayer's identification number and such identification number was issued before the date the eligible new child was born or adopted by the taxpayer. (e) Exception from reduction or offset Any payment made to any individual under this section shall not be— (1) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or (2) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. (f) Restrictions on taxpayers who improperly claimed credit or improperly received payment (1) In general No credit shall be allowed under this section for any taxable year in the disallowance period. (2) Disallowance period For purposes of paragraph (1), the disallowance period is— (A) the period of 120 calendar months after the most recent calendar month for which there was a final determination that the taxpayer’s claim of credit under this section was due to fraud, and (B) the period of 24 calendar months after the most recent calendar month for which there was a final determination that the taxpayer’s claim of credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud). (g) Regulations The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this section, including regulations or guidance with respect to the time and manner for filing a claim for the credit allowed under this section.. (b) Clerical amendment The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 6436. New child payments..